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SEC Postpones Decision on Global X’s Bitcoin ETF; New Deadline Is Set

Decisions regarding the spot Bitcoin (BTC) exchange-traded fund (ETF) applications filed by Global X and Franklin Templeton have been deferred by the US Securities and Exchange Commission (SEC).

The government set a new deadline of December 22 for public comments on Global X’s application, stating in a filing on Friday that it anticipates receiving them in the next 35 days.

The Global X Bitcoin Trust, which was filed with the Cboe BZX exchange, has a deadline of this Friday.

The SEC declared in a separate filing that it would also prolong the time it takes to make a decision on Franklin Templeton’s spot Bitcoin exchange-traded fund.

On September 26, the application was filed, and on October 3, it was made available for comment.

Originally setting November 17 as the deadline for decisions, the SEC has now extended the time frame to decide whether to approve or reject the proposal by early 2024.

James Seyffart, an ETF expert, verified the delays in a recent X (previously Twitter) post.

Seyffart tweeted on Friday indicating that the SEC’s decision regarding the files from Franklin and Global X had been postponed as planned.

Seyffart went on to say that it is doubtful that Global X will hear a decision until the end of 2023 if there is a public comment process of at least 35 days.

Seyffart stated that he had not seen any comments concerning Franklin’s application on the SEC website or came across the relevant information there.

Proposals may be postponed by the SEC for a maximum of 240 days following their initial submission.

The regulatory body has indicated that it plans to assess the current spot bitcoin ETF applicants for the entire allocated review period, as seen by these recent postponements.

SEC Maintains Stance Despite Mounting Frustration

Despite growing industry dissatisfaction, the SEC has continued to treat cryptocurrency exchange-traded funds (ETFs) in an opaque manner.

The SEC had previously stated that it would take longer to rule on two other applications for cryptocurrency exchange-traded funds (ETFs): Hashdex’s plan to change its Bitcoin futures ETF into a spot ETF and Grayscale’s application to create an Ethereum futures ETF.

It is important to remember that certain professionals in the field have previously asserted that it is unlikely that the SEC will approve a spot Bitcoin ETF before 2024.

The flagship cryptocurrency reached a high of $38,000 recently, thanks to a surge in cryptocurrency markets driven by anticipation surrounding the introduction of a spot Bitcoin ETF.

Analysts at Cantor Fitzgerald, a financial services company, think the much anticipated spot Bitcoin exchange-traded fund (ETF) is getting closer to reality.

Cantor Fitzgerald thinks that the market surveillance methods that the new applicants are putting forward may allay these concerns and persuade the SEC to approve them.

Because they are worried about possible manipulation on offshore spot markets, the SEC has been reluctant to approve a spot bitcoin ETF.

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